By Amy-Jo Crowley and Charlie Conchie LONDON, April 21 (Reuters) - The owners of British pharmacy chain Boots are working with consultants on a possible strategy overhaul in preparation for a
Exclusive-Boots owners hire consultants for overhaul before possible 2027 London IPO, sources say
Boots Owners Prepare for Potential London IPO
By Amy-Jo Crowley and Charlie Conchie
Consultants Engaged for Strategic Overhaul
LONDON, April 21 (Reuters) - The owners of British pharmacy chain Boots are working with consultants on a possible strategy overhaul in preparation for a potential London stock market listing as soon as 2027, people familiar with the plans said.
Boots and its private equity owner, Sycamore Partners, have held talks with advisers in recent weeks about the possibility of an initial public offering, three sources told Reuters.
Growth Initiatives and Early-Stage Discussions
The consultants have been drafted in to explore growth initiatives around beauty and wellness as well, another source said.
All four sources said discussions are at a preliminary stage and no final decision has been taken on whether to list Boots.
Alternative Options: Sale Remains Possible
A sale could also be a possibility, given private equity interest in the business, one of the people said.
Sycamore and Boots representatives declined to comment.
Background: Recent Ownership Changes
Walgreens Boots Alliance was taken private by Sycamore last year in a deal valued at about $10 billion. Boots has since split into a standalone entity, with Italian billionaire Stefano Pessina and his family having reinvested in the business.
Hope for London Revival
An IPO in London would be a boost for the British capital after policymakers and regulators overhauled listing rules in an effort to make its market more attractive.
Pessina’s Comments and Previous Sale Attempts
Pessina told the Financial Times in an interview on April 6 that a sale of Boots is inevitable "sooner or later", citing Sycamore's need to exit. He said the business was being reorganised first and it was too early to say when.
Walgreens Boots Alliance considered selling Boots in 2022 but scrapped the sale because of market volatility. Boots was valued at 6 billion to 8 billion pounds ($8.11 billion to $10.81 billion) at that time, Reuters reported.
London’s IPO Market Challenges
London has lost its crown in recent years as the top venue in Europe for listings, overtaken by Zurich and Frankfurt. The lacklustre economic backdrop in Britain, fund outflows and a perception that its stock market is undervalued have meant London has lost out to other cities.
The market has also been hit by take-private deals and high-profile companies swapping primary listings to overseas markets. A Boots IPO in London would add to hope for a revival, joining expected additions such as Norway's Visma.
Boots’ Business Overview
Boots operates more than 1,800 stores across Britain and offers pharmacy services, health products and beauty brands including No7 and Soap & Glory.
It is also a major provider of pharmacy services funded by Britain's National Health Service (NHS), representing a core part of its earnings.
($1 = 0.7398 pounds)
(Reporting by Amy-Jo Crowley and Charlie Conchie in London; Editing by Anousha Sakoui, Alexander Smith and David Goodman)
